What Is an OPCF 27 Endorsement?
An OPCF 27 endorsement is an optional add-on that extends your existing auto insurance coverage to vehicles you don’t own, such as rental cars or borrowed vehicles. It’s also known as Legal Liability for Damage to Non-Owned Automobiles. Essentially, it’s extending your insurance coverage to cars you rent or borrow.
OPCF 27 is one of the many Ontario Policy Change Forms. OPCFs are optional add-ons that let you modify your basic car insurance policy. Examples of other OPCFs include:
When should you get an OPCF 27? First, check whether you’re insured when driving somebody else’s car.
What OPCF 27 Covers
An OPCF 27 endorsement extends your insurance policy to rented or borrowed vehicles. Here’s what you get by adding OPCF 27 to your car insurance policy:
- Third-party liability: This coverage pays for losses, damage, injury, and death caused by your rented or borrowed vehicle to other people.
- Accident benefits coverage: This coverage pays your medical expenses and potential funeral expenses in case of an accident. It also covers income replacement if the accident leaves you unable to work.
- Collision insurance: This coverage pays for the rental car’s repair or replacement costs if you hit an object or vehicle.
- Comprehensive protection: This coverage compensates for losses due to other causes. Comprehensive protection covers things such as vandalism, theft, and fire.
Collision and comprehensive protection are an especially valuable part of OPCF 27 coverage since they’re often offered as optional coverage at an extra cost.
Conditions and Limitations of OPCF 27
OPCF 27 does have some limits and conditions, so it’s not complete protection for rental and borrowed vehicles. Here are the conditions and limitations of OPCF 27 protection:
- OPCF 27 only protects the drivers listed on your car insurance policy.
- OPCF 27 protection has a 30-day time limit for rental cars.
- OPCF 27 has a limited coverage amount. Limits range from $25,000 to $50,000.
- OPCF 27 only applies to standard cars weighing under 4500 kilograms.
How An OPCF 27 Endorsement Works
An OPCF 27 endorsement works much like a regular insurance policy. If you get in an accident, you can contact your insurance company to make a claim. From there, your insurer will guide you through the claims process until you get the coverage promised.
How Much Does OPCF 27 Cost?
On average, the OPCF 27 endorsement costs around $24 per year in Ontario, making it a relatively inexpensive add-on that won’t significantly impact your car insurance premium. Contact your insurer for more details about OPCF 27 pricing.
OPCF 27 and Car Rentals
Even if you only rent cars once a year, OPCF 27 can be well worth it since rental companies charge daily for car insurance. Some car rental agencies can charge $60 a day for temporary insurance. If you’re renting a car for multiple weeks, paying for OPCF 27 might be cheaper.
Paying for OPCF 27 is an even better idea if you rent cars frequently. Instead of shelling out hundreds of dollars every time you rent a car, you can pay $50 and not have to think about car insurance for the entire year.
Is OPCF 27 Mandatory?
An OPCF 27 is not a part of the mandatory coverage package needed to drive in Ontario. You can even legally borrow a friend or family member’s car for a short drive without getting extra coverage.
But an OPCF 27 is highly recommended if you rent cars often or plan to do so for a long time. The longer you drive a car, the higher your chances of getting in an accident. In that case, you’ll be glad you took an OPCF 27 before renting the car.
Are There Alternatives to OPCF 27?
There’s an alternative to OPCF 27 when renting vehicles, called credit card rental car insurance. Many credit card companies offer rental car insurance with extensive coverage that may include protection from:
- Theft
- Vandalism
- Physical damage
- Injuries
- Loss of rental car
Moreover, credit card rental car insurance costs are added to your credit card bill. You don’t have to make separate payments, so it’s more convenient.
However, you should compare your credit card company’s rental car insurance and OPCF 27. Research each option and pick whichever one gives you the most value. Read our guide about rental car insurance to learn more.
Differences Between OPCF 27 and OPCF 27B
OPCF 27 and OPCF 27B sound similar but have different uses. OPCF 27 is made for personal-use cars, while OPCF 27B is for commercial and business drivers.
Will OPCF 27 Cover Me in the United States?
OPCF 27 covers you in the United States. Its coverage includes all Canadian provinces and the entire United States.
Key Advice from MyChoice
- Consider OPCF 27 if you rent cars regularly. The yearly cost is often much lower than paying for daily rental insurance at the counter.
- Review your policy limits before relying on OPCF 27. Damage coverage for rental vehicles is typically capped, so you should confirm whether the limit is sufficient.
- Check who is listed on your policy. Only drivers named on the policy are covered when using borrowed or rental vehicles.